Operator Disclosure

Role & Responsibility

The operator is responsible for:

 • implementing the strategy in accordance with the published risk policy,

 • executing trades within predefined exposure and drawdown limits,

 • maintaining mandatory options-based hedging,

 • monitoring portfolio risk across market regimes.

The operator does not have discretion to override risk limits or suspend hedging requirements.

Strategy Scope

The operator may trade:

 • major crypto assets (spot and perpetuals),

 • listed crypto options used exclusively for downside and tail-risk management.

The operator may not:

 • sell naked options,

 • run short-volatility strategies,

 • engage in yield farming, liquidity mining, or leverage-driven alpha,

 • deploy capital outside the defined strategy mandate.

Risk Management Principles

 • All positions are evaluated on a net-risk basis after hedging.

 • Portfolio risk is managed at the aggregate level, not by individual trades.

 • Drawdown thresholds trigger automatic risk reduction.

 • Portfolio vega is maintained neutral to positive.

 • Capital preservation takes precedence over performance optimization.

Governance & Controls

 • The strategy follows a predefined, documented risk policy.

 • Changes to risk limits or execution rules are only allowed outside of active positions.

 • The operator is accountable to the strategy mandate and reporting obligations.

 • No discretionary overrides during market stress events.

Transparency & Reporting

The operator commits to:

 • regular risk and performance reporting,

 • disclosure of drawdowns and volatility events,

 • explanation of hedge behavior during stress scenarios,

 • clear attribution between directional PnL and options PnL.

Historical performance, if provided, is presented net of hedge costs and fees.

Conflicts of Interest

 • The operator does not trade against the strategy.

 • No capital is allocated to conflicting strategies using the same instruments.

 • No incentive structures based solely on short-term performance.

Custody & Execution

 • Assets remain under client or DAO-controlled custody.

 • Execution occurs on approved exchanges and venues.

 • The operator does not have withdrawal rights.

Limitations & Risks

This strategy does not eliminate losses or guarantee positive returns.

Drawdowns are possible, particularly during prolonged adverse regimes.

Options hedging reduces tail risk but introduces ongoing premium costs.

Summary

The operator’s role is constrained, transparent, and accountable.

Risk control is systematic.

Discretion is limited.

Capital preservation is the primary objective.